Alstom-Led Group to Sign South African Order for 3,600 Coaches

A group led by Alstom SA (ALO) will sign a
contract today to build 3,600 carriages for Passenger Rail
Agency of South Africa in the decade through 2025, the agency
said in an e-mailed statement.

South Africa is revamping its rail-passenger services to
meet the needs of a growing population and replace trains that
have been in use since the 1950s. The contract is a boon for
Alstom, whose orders for the April-June period dropped 32
percent from a year earlier to 4.07 billion euros ($5.5 billion)
because of falling demand for its thermal-power and rail
equipment.

The Gibela consortium led by Levallois-Perret, France-based
Alstom was last year named preferred bidder for a contract then
valued at 51 billion rands ($5.14 billion). Alstom outbid six
other companies, including Bombardier Inc. (BDRBF) from Canada and China
CNR Corp. Ltd. The project will create 8,100 jobs in South
Africa, the agency said in December.